The Federal Board of Revenue (FBR) has issued an invitation to business chambers and associations to submit their sales tax and federal excise proposals for the upcoming budget 2020/2021. The primary aim is to eliminate flying invoices and tax fraud while broadening the tax base and increasing revenue.
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FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.
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FBR asks people to file income tax returns
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday urged people having taxable income to file their income tax returns on or before February 28, 2020.
The FBR said persons having annual income of Rs400,000 must submit their annual tax returns for tax year 2019.
The tax body urged people to file annual income tax returns and play part to broaden tax net and become active taxpayer.
It further said that salaried persons can also file their income tax returns through Tax Asaan application through mobile phones.
Tax payment options have been provided through ATM, internet banking, credit card and direct debit from bank account.
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Exporters doubt refund payment release on FBR collection failure
KARACHI: Exporters expressed concerns that their liquidity may be taken away by the government in shape of sales tax worth billions of rupees as Federal Board of Revenue (FBR) has failed to achieve its revenue collection target.
Mian Anjum Nisar, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that the exporters fear that their precious liquidity taken away by the government in shape of sales tax worth billions of rupees which is completely stuck up and refunds may be excessively delayed because the FBR has also failed to achieve its revenue collection target.
FPCCI chief held a comprehensive detailed meeting with the leading export oriented sector at PHMA House, Karachi with Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum and urged the Government to honour its commitment with the export sector.
The President, FPCCI said that the exporters are in real fixed and under stress as Government is not implementing the decision it has taken to support export oriented sector.
The Advisor to Prime Minister on Finance promised that the refunds will not get stuck up whereby he and his team have made a commitment that after passing of budget, his team will hold meetings with exporters and devise an automated system like in Bangladesh or China.
Through the automated system, exporters will get a major amount from bank or the State Bank and would not be dependent on the FBR. Advisor Finance promised that if the new refund system will not work, the govt. will revisit its decision in 3-6 month period. Since more than 8 months have been passed and the FBR FASTER system has failed for speedy refunds, therefore, the Govt. should honour their commitment and restore zero rating – No Payment No Refund Regime for the export sectors.
President FPCCI further told that the Govt. has failed to refund sales tax claims under FASTER System of textile exporters as per commitment, to refund claim amount in 72 hours, contrarily the Govt. has not paid exporters’ claims for the last seven months.
Approx. Rs100 billion of textile exporters liquidity held up under FASTER Refund System in last 8 months and total Rs210 billion are withheld with the government.
Payment timeline for payment of Customs Rebate claims which previously reduced to 7 months has again been prolonged to 13 months.
However, Government also committed that Customs Rebate, DLTL claims will also be paid electronically along with export proceeds.
Reportedly, hundreds of exporters SMEs have stopped their production owing to liquidity problems who have not received their sales tax refund claims for last seven months and due to high rates of utilities shall be compelled for closure if their sales tax refunds are not released on immediate basis and utility tariffs are not rationalized to facilitate them to get new orders and resume production.
The President FPCCI emphasized to implement power tariff of 7.5 cents/kwh including all charges across Pakistan including Karachi and RLNG at 6.5 dollars/MMBTU.
President also mentioned that while notification of said tariffs was issued the time period inadvertently was missing, it should be for three years period as agreed.
He further informed that the OGRA has separated zero rated industry from general industry for Gas Tariff while NEPRA is still not implementing the decisions of separate treatment for zero rated and general industry.
Mian Anjum Nisar President FPCCI said that the tariff for electricity and gas should be fixed on yearly basis for the Export Oriented Sectors and Priority be given only to these sector as the Export Sectors have to make commitments to their buyers for 6 months in advance and frequent increase in the electricity and gas tariffs jeopardizes their entire planning and they suffer huge losses to keep up commitments to their foreign buyers.
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Taxpayers unable to file annual returns as FBR’s website goes offline
KARACHI: Taxpayers are not able to file their annual income tax returns for tax year 2019 as official portal of Federal Board of Revenue (FBR) is remained offline for past several hours on Wednesday.
The taxpayers, who failed to avail past timelines for filing their income tax returns for tax year, were trying to open the FBR’s online e-filing portal since morning but they were unable to access the portal to discharge their liability.
The FBR’s website was remaining offline till 4:50pm. FBR officials said that the website was offline for the past five to six hours.
It is worth mentioning that the last date for filing income tax returns is February 28, 2020.
The actual date for filing income tax for tax year 2019 was September 30, 2019 for salaried, business and Association of Persons (AOPs). For the companies the last date was December 31, 2019. However, the FBR extended the date for all taxpayers up to February 28, 2020.
Sources in the FBR said that the tax machinery was trying to bring the website online as soon as possible. However, they were unable to explain the error.
With the stoppage of the portal all the official work done online was also affected. Sources in local tax offices said that everything related to the portal was not responding.
The sources said that the FBR may not extend the last date for filing income tax returns despite non-operation of the official portal of the FBR.
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FBR official website not responding
KARACHI: The official website of Federal Board of Revenue (FBR) is not available online for the past few hours creating problems for income tax return filers as the date is expiring after two days.
The official website https://www.fbr.gov.pk/ is not available online for the past few hours as the site showing massages of runtime error or connection timed out. The website was remained offline till 2:00pm on Wednesday.
It is important to note that the last date for filing income tax returns is February 28, 2020 for tax year 2020.
The actual last date for filing of income tax returns was September 30, 2019. However, the FBR allowed multiple extension in dates and latest extension was granted up to February 28, 2020.
Sources in the FBR, however, said that the problem was being resolved in order to provide facilitation to taxpayers.
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FBR advised to enhance monitoring, enforcement for achieving annual targets
ISLAMABAD: The ministry of finance has advised Federal Board of Revenue (FBR) to enhance monitoring and enforcement in order to achieve annual targets.
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Taxpayers can make payment in installments
KARACHI: Taxpayers have option to pay due liability in installments on explaining plausible reasons to the concerned Commissioner of Inland Revenue.
Sources in Federal Board of Revenue (FBR) Monday said that the tax payable by a taxpayer on the taxable income of the taxpayer including the tax payable under section 113 or 113A of Income Tax Ordinance, 2001 for a tax year shall be due on the due date for furnishing the taxpayer’s return of income for that year.
However, where any tax is payable under an assessment order or an amended assessment order or any other order issued by the commissioner under the Ordinance, a notice shall be served upon the taxpayer in the prescribed form specifying the amount payable and thereupon the sum so specified shall be paid within thirty days from the date of service of the notice:
Provided that the due date for payment of tax payable under sub- section (7) of section 147 shall be the date specified in sub-section (5) or sub-section (5A) or first proviso to sub-section (5B) of section 147.
“Upon written application by a taxpayer, the Commissioner may, where good cause is shown, grant the taxpayer an extension of time for payment of tax due under sub-section (2) or allow the taxpayer to pay such tax in instalments of equal or varying amounts as the Commissioner may determine having regard to the circumstances of the case.”
Where a taxpayer is permitted to pay tax by instalments and the taxpayer defaults in payment of any instalments, the whole balance of the tax outstanding shall become immediately payable.
The grant of an extension of time to pay tax due or the grant of permission to pay tax due by instalments shall not preclude the liability for default surcharge arising under section 205 from the due date of the tax under sub-section (2).
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FBR withdraws 40% regulatory duty on sugar import
ISLAMABAD: The government has withdrawn 40 percent regulatory duty on import of sugar and sugar products.
The FBR issued SRO 127(I)/2020 dated February 24, 2020 to withdraw the regulatory duty of 40 percent on import of commodities falling under Customs Harmonized Code Chapter of 17.01.
The government imposed 40 percent regulatory duty on import of sugar through SRO 680(I)/2019.
However, through the latest SRO 127(I)/2020 the regulatory duty has been withdrawn.
It is worth mentioning that the recently the retail prices in the local markets surged abnormally. Some quarters had suggested the government to import the commodity to meeting the local demand and discourage hoarding.
However, the Economic Coordination Committee in its latest meeting had rejected the proposal to import sugar as sufficient quantity was available in the country.
Industry sources said that importers would able to import sugar from international market without levy of regulatory duty.
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How to check ATL status?
KARACHI: Appearance of name on active taxpayers list (ATL) has become very important especially after the introduction of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019.
The filing of income tax return is mandatory for persons driving taxable income or specified under Section 114 of Income Tax Ordinance, 2001.
The appearance of names on the ATL is only possible after filing income tax returns within due date. In case persons are not on the ATL then the rate of withholding tax shall be increased by 100 percent on various transactions.
Persons fail to file their returns by due date but file after the date will also not qualify to enlist their name on the ATL until fine is not paid to the Federal Board of Revenue (FBR).
Currently the ATL is in applicable on the basis of income tax returns filed for tax year 2018. The FBR will issue new ATL on the basis of returns filed for tax year 2019 on March 01, 2020.
The last date for filing of income tax returns for tax year 2019 is February 28, 2020. The new ATL shall carry the names of those taxpayers who filed their income tax returns up to February 28, 2020.
A taxpayer should check his/her status on the ATL before making transactions in order to avail reduced rate of tax rates.
CHECK ACTIVE TAXPAYER STATUS
Active Taxpayer status can be checked in the following three (3) ways:
VERIFICATION THROUGH ONLINE PORTAL
The ATL status check allows you to confirm your Active Taxpayer status.
CHECK ACTIVE TAXPAYER STATUS BY SMS
Check Individual’s Active Taxpayer status by SMS through the following procedure:
Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.
Check Active Taxpayer status of AOP and Company by SMS through the following procedure:
Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.
Check AJ&K Active Taxpayer status by SMS through the following procedure:
For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966.
Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.
CHECK ACTIVE TAXPAYER STATUS BY DOWNLOADING ATL
You can also download ATL from:
Active Taxpayer List (Income Tax)
The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.
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No service charges allowed for collecting withholding tax
KARACHI: Federal Board of Revenue (FBR) has not allowed deduction of service charges by withholding agents for collecting/deducing withholding tax on behalf of the federal tax authority.
According to an official document, under the Income Tax Ordinance, 2001 the withholding agents are not entitled to receive any service charges for collection or deduction of tax as a withholding agent.
However, it has been noticed that certain withholding agents including provincial governments and other autonomous organizations are claiming service charges for acting as withholding agents.
In order to expressly disallow such claims, new sub-section (6) and (7) have been inserted in section 168 which provides that notwithstanding anything contained in any other law or any rules, for the time being in force, no amount is to be deducted on account of service charges from the tax withheld or collected by any person under the provisions of this Ordinance.
As provided in sub-section (7) in case any amount is deducted on account of service charges by the person, the said person will be liable to pay this amount to the Federal Government and all the provisions of the Ordinance shall apply in so far as they apply to the recovery of tax.